Project ID: P122812

Azerbaijan Republic

Agricultural Competitiveness Improvement Project

Loan No. 8286-AZ

Assignment Title: TA for improvement of credit mechanisms for agribusiness

Reference No. C/CS-7

 The Government of Azerbaijan has received financing from the World Bank toward the cost of the Agricultural Competitiveness Improvement Project, and intends to apply part of the proceeds for consulting services.

The consulting services (“the Services”) include support to the State Service on Management of Agricultural Projects and Credits (SSMAPC) in improvement of its agricultural lending mechanisms and procedures. The State Service on Management of Agricultural Projects and Credits is the agency of the Ministry of Agriculture responsible for evaluating, financing, organizing and controlling the implementation of the agricultural projects, as well as for the purpose of government support, providing the access of the individuals and legal entities to the concessional loans for agricultural activities by means of authorized credit institutions using the funds from the state budget and other eligible sources.

The objective of the assignment is to (i) review the existing agricultural lending mechanisms in Azerbaijan and recommend new lending products and credit mechanisms, and (ii) develop recommendations for strengthening the capacity of the SSMAPC and improvements of lending mechanisms and operational procedures.

The responsibilities of the consulting company are:

· Review and analyze the existing agro-lending system and agriculture credit supply mechanisms in Azerbaijan, make recommendations on the improvement of the credit schemes and introduction of the new lending products in agriculture based on good international practices. The new products would include value chain financing products, such as contract farming, transaction finance, warehouse receipt system and other products as the Consultant shall have determined their relevance in the Azerbaijan context.

· Review the existing Charter, regulations and operational procedures of SSMAPC, and develop recommendations for strengthening capacity of the SSMAPC. This would include recommendations on improvement of Charter, lending procedures, and monitoring and IT systems of the SSMAPC. The Consultant will also review risk management mechanisms both at the level of the participating banks and sub-borrowers and develop recommendations for improvements of the loan portfolio monitoring system to reduce the loan repayment risks.

The Agricultural Competitiveness Improvement Project now invites eligible consulting firms (“Consultants”) to indicate their interest in providing the Services. Interested Consultants should provide information demonstrating that they have the required qualifications and relevant experience to perform the Services. The shortlisting criteria are:

· Experience in (i) assessment of agricultural lending systems and mechanisms; (ii) development of new financial products specifically tailored to agriculture needs; (iii) operations of wholesale lending agencies, including the agencies implementing the state budget credit lines;

· Availability of adequate staff, including agricultural finance experts, financial sector development specialist, legal and IT specialist.

The attention of interested Consultants is drawn to paragraph 1.9 of the World Bank’sGuidelines: Selection and Employment of Consultants under IBRD Loans and IDA Credits & Grants by World Bank Borrowers January 2011 edition Revised July 2014  (“Consultant Guidelines”), setting forth the World Bank’s policy on conflict of interest.

Consultants may associate with other firms in the form of a joint venture or a subconsultancy to enhance their qualifications.

A Consultant will be selected in accordance with the CQS Selection Based on Consultant’s Qualification method set out in the Consultant Guidelines.

Further information can be obtained at the address below during office hours from 0900 to 1800.

Expressions of interest must be delivered in a written form to the address below (in person, by mail or by e-mail) by March 11, 2016.  State Service on Management of Agricultural Projects and Credits under the Ministry of Agriculture / Agricultural Competitiveness Improvement Project

Anar Azimov

Project director

80, U. Hajibeyli Str., Government House, Room 801

Baku AZ1016, Azerbaijan

Tel: +994124937108

E-mail:[email protected]